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Yokoi was moved from maintenance to the new "Nintendo Games" department as a product developer.Nintendo continued to produce popular toys, including the Ultra Machine, Love Tester and the Kousenjuu series of light gun games.

Buckingham Fountain is an iconic Chicago attraction known for nightly light-and-music shows.The first Game & Watch game released, titled Ball, was distributed worldwide.The modern "cross" D-pad design was developed in 1982, by Yokoi for a Donkey Kong version.The handmade cards soon became popular, and Yamauchi hired assistants to mass-produce cards to satisfy demand.In 1956, Hiroshi Yamauchi, grandson of Fusajiro Yamauchi, visited the U. to talk with the United States Playing Card Company, the dominant playing card manufacturer there.The success of the game and many licensing opportunities (such as ports on the Atari 2600, Intellivision and Coleco Vision) gave Nintendo a huge boost in profit and in addition, the game also introduced an early iteration of Mario, then known in Japan as Jumpman, the eventual company mascot.

In 1979, Gunpei Yokoi conceived the idea of a handheld video game, while observing a fellow bullet train commuter who passed the time by interacting idly with a portable LCD calculator, which gave birth to Game & Watch.

Despite some successful products, Nintendo struggled to meet the fast development and manufacturing turnaround required in the toy market, and fell behind the well-established companies such as Bandai and Tomy.

In 1973, its focus shifted to family entertainment venues with the Laser Clay Shooting System, using the same light gun technology used in Nintendo's Kousenjuu series of toys, and set up in abandoned bowling alleys.

Four versions of these consoles were produced, each including variations of a single game (for example, Color TV Game 6 featured six versions of Light Tennis).

A student product developer named Shigeru Miyamoto was hired by Nintendo at this time.